Workers cannot afford mandatory private pension – GWU

The General Workers’ Union is insisting workers cannot afford a mandatory private pension to supplement that granted by the government.

It said it would not accept the imposition of such a mandatory pension. Changes, it insisted, had to be made by consensus.

The union was reacting to a report issued by the Pension Reform Working Group on Wednesday saying the country had to introduce the second-pillar pension system without delay.

The working group said a mandatory private pension scheme targeted for people under 45 years of age should be launched immediately because studies showed the state pension would not be adequate in the future.

The union maintained that, given the economic climate, such a second pillar pension was not affordable, especially since families were heavily burdened by the high cost of living and high utility prices.